NetEaseNETTF -0.98%94 Return-on-Tangible-Asset is 19.53% as of Mar. 2026, which is 18% above its 10-year median of 16.52. GuruFocus rates NETTF with a GF Score™ of 94/100 and a GF Value™ of $24.76 (Fairly Valued). Among 568 Interactive Media companies, NetEase ranks better than 85.92% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. NetEase's annualizedNet Income for the quarter that ended in Mar. 2026 was $6,195 Mil. NetEase's average total tangible assets for the quarter that ended in Mar. 2026 was $31,728 Mil. Therefore, NetEase's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 19.53%.
The historical rank and industry rank for NetEase's Return-on-Tangible-Asset or its related term are showing as below:
NETTF'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 7.99 Med: 16.52 Max: 23
Current: 16.29
During the past 13 years, NetEase's highest Return-on-Tangible-Asset was 23.00%. The lowest was 7.99%. And the median was 16.52%.
NETTF's Return-on-Tangible-Asset is ranked better than 85.92% of 568
companies
in the Interactive Media industry
Industry Median: 0.865
vs NETTF: 16.29
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
NetEase Return-on-Tangible-Asset Related Terms
NetEase Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for NetEase's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NETTF vs EA, TTWO, RBLX: Return-on-Tangible-Asset Comparison
For the Electronic Gaming & Multimedia subindustry, NetEase's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
NetEase Return-on-Tangible-Asset vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, NetEase's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where NetEase's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 19.53% mean?
NetEase (NETTF) has a Return-on-Tangible-Asset of 19.53% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on NetEase and its competitors. This is 18% above median its historical median of 16.52. Over the past decade, NetEase's Return-on-Tangible-Asset has ranged from 7.99 to 23.00. According to the industry distribution chart, NetEase ranks #80 out of 568 companies in the Interactive Media industry, placing it in the top 14.1%.
Is NetEase's Return-on-Tangible-Asset too high?
NetEase's current Return-on-Tangible-Asset of 19.53% is 18% above median its 10-year median of 16.52. Over the past 10 years, this metric has ranged from a low of 7.99 to a high of 23.00. The Interactive Media industry median Return-on-Tangible-Asset is 0.87. NetEase's value of 19.53% is 2157.8% above this industry median. Based on the distribution chart, NetEase ranks #80 out of 568 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, NetEase has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does NetEase's Return-on-Tangible-Asset compare to EA and TTWO?
According to the Interactive Media industry distribution chart, NetEase ranks #80 out of 568 companies for Return-on-Tangible-Asset. This places NetEase in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 0.87. NetEase's value of 19.53% is 2157.8% above this benchmark. Historically, NetEase's own Return-on-Tangible-Asset has ranged from 7.99 to 23.00 over the past decade. While the company's 10-year median is 16.52 vs. the industry median of 0.87, NetEase has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for an Interactive Media company?
The median Return-on-Tangible-Asset among Interactive Media companies is 0.87, based on 568 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NetEase's current Return-on-Tangible-Asset of 19.53% is 2157.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on NetEase and its competitors. For the Interactive Media industry, the median Return-on-Tangible-Asset is 0.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetEase's current Return-on-Tangible-Asset is 19.53%, which is 18% above median its own 10-year median of 16.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NetEase stock overvalued right now?
Based on GuruFocus' analysis, NetEase (NETTF) is currently considered Fairly Valued. The stock's GF Value™ is $24.76, compared to a current price of $24.26 — trading 2% below its estimated fair value. The current Return-on-Tangible-Asset is 19.53%, which is 18% above median its 10-year median of 16.52 and 2157.8% above the Interactive Media industry median of 0.87. NetEase's overall GF Score™ is 94/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For NetEase (NETTF), the current Return-on-Tangible-Asset is 19.53% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is NetEase (NETTF) Overvalued in 2026?
Based on GuruFocus' analysis, NetEase stock appears to be undervalued.
The current stock price of $24.26 is trading 2% below its estimated GF Value™ of $24.76.
GuruFocus considers NetEase to be Fairly Valued.
Key valuation signals for NETTF:
Return-on-Tangible-Asset: 19.53% (18% above median its 10-year median of 16.52)
GF Value™: $24.76 vs. price of $24.26 (2% below fair value)
Industry Position: 2157.8% above the Interactive Media median (#80 of 568)
No single metric tells the full story. See the NETTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in the late 1990s as an internet portal, NetEase has evolved into China's second-largest online gaming company. Its early success was anchored by the massively multiplayer online role-playing game Fantasy Westward Journey, which laid the foundation for a durable franchise strategy. Over the past decade, the company has expanded its portfolio with successful titles such as Justice, Identity V, Naraka: Bladepoint, and Eggy Party, all of which continue to maintain sizable and engaged player bases.In addition to its in-house development capabilities, NetEase partners with global IP holders such as Microsoft and Marvel to develop and publish titles based on established franchises, including World of Warcraft, Diablo Immortal, and Marvel Rivals, further strengthening its global presence.
94GF Score
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